Monthly Overview
KBRA’s Prime and Non-Prime U.S. Auto Loan ABS Indices showed mostly weaker credit performance this month, with annualized net losses rising 17 basis points (bps) month-over-month (MoM) in our prime index and 35 bps in our non-prime index. Similarly, late-stage delinquencies (60+ days) increased in both indices, rising 2 bps in the prime index and 16 bps in the non-prime index. Early-stage delinquencies (30-59 days) was the only metric to improve this month, declining 4 bps and 2 bps in the prime and non-prime index, respectively.
Credit performance softened on a year-over-year (YoY) basis. Net losses ticked up 5 bps and 23 bps in our prime and non-prime index, respectively. This trend extended to both stages of delinquency, with each index showing higher levels YoY. Notably, the non-prime index displayed significant YoY deterioration in both delinquency buckets, rising 86 bps in early-stage and 70 bps in late-stage delinquencies.
Figures 1-14 show performance metrics…